Japanese megabanks weigh Middle East evacuations, JPMorgan limits travel
[TOKYO/NEW YORK] Several major Japanese banks are considering evacuating staff from the Middle East and Wall Street giant JPMorgan has restricted employee travel in the region as tensions escalate.
The US entered the war against Iran over the weekend with strikes against three key nuclear sites, joining Israel's military campaign to cripple Teheran's nuclear capabilities. Iran has vowed to retaliate.
On Monday, Israel struck Evin prison in northern Teheran, a potent symbol of Iran's governing system, in what Israel called its most intense bombing yet of the Iranian capital.
The war threatens years of effort by Middle Eastern governments to court global financial firms as part of plans to diversify their economies away from oil.
Countries such as Saudi Arabia and the United Arab Emirates have pushed to position themselves as regional financial hubs, offering incentives and regulatory reforms to attract banks and asset managers.
Japan's Sumitomo Mitsui Financial Group has begun evacuating staff from locations including Iran and Qatar to ensure their safety, a spokesperson said.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
US-based JPMorgan is allowing only essential travel in and out of the Middle East for employees, a person familiar with the matter told Reuters on Monday (Jun 23).
The largest US bank is offering support to employees on an individual basis, as needed, the source added, requesting anonymity discussing confidential information.
Goldman Sachs had asked its staff in Israel to work remotely about a week ago, according to a source familiar with the matter.
Japan's Mitsubishi UFJ Financial Group has begun evacuating some family members of staff from Dubai and the Saudi Arabian capital Riyadh, a spokesperson said, and is also considering allowing staff to leave at their own discretion.
Ang Wee Khoon, head of risk management at the DIFC branch of Bank of Singapore, one of Asia's biggest private banks, told Reuters the bank has halted all non-essential travel to and from Dubai.
'The safety of our staff is our highest priority, and we stand ready to activate our business continuity plans while minimising the disruptions to clients,' Ang said.
Mizuho Financial Group is urging its staff to be cautious and is considering measures including evacuations, a spokesperson said. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
30 minutes ago
- Straits Times
Escalating Hormuz tensions drive up Middle East war risk insurance costs, sources say
A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration taken June 22, 2025. REUTERS/Dado Ruvic/Illustration LONDON - U.S. and Israeli attacks on Iran and Tehran's reprisals have doubled the price of insuring shipments to the Middle East and the Gulf in the last week, insurance sources said on Monday. War risk insurance premiums for shipments to the Middle East Gulf have jumped to 0.5% from around 0.2-0.3% a week ago, as risks grow to the critical Strait of Hormuz, the sources said. The cost of a seven-day voyage is based on the value of the ship and the increase will add tens of thousands of dollars each day in additional costs. While underwriters typically price risk and rates individually, the current 0.5% level reflected rates on Monday, the sources told Reuters and The Insurer, a Reuters publication. "The position (on rates) is subject to constant change," said David Smith, head of marine with insurance broker McGill and Partners. Iran carried out a missile attack on a U.S. airbase in Qatar on Monday after the U.S. bombed Iranian nuclear sites at the weekend. The conflict has raised concerns Iran could close Hormuz, the strait between Iran and Oman through which around 20% of global oil and gas demand flows. That has spurred forecasts of oil surging to $100 a barrel. Shipping rates for supertankers, which can carry 2 million barrels of oil, have also soared, more than doubling in a week to over $60,000 a day, freight data shows. War risk rates have hovered around the 0.3% level in the Gulf for many months. Rates in the Red Sea area spiked to 1% in 2024 after Iran-backed Houthis launched attacks on commercial ships which they said were in solidarity with Palestinians fighting Israel in Gaza. War risk rates for Israeli ports have soared in recent days, quoted as much as 1%. London's marine insurance market opted on June 18 not to widen waters around the Gulf deemed high risk, which is closely watched by underwriters. "The listed areas have been left unchanged as ships calling or transiting most of the Middle East already have to notify underwriters, who can then assess such voyages on their merits," said Neil Roberts, secretary of the Joint War Committee, which comprises syndicate members from the Lloyd's Market Association and representatives from the London insurance company market. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
30 minutes ago
- Straits Times
British, Singapore airlines halt Gulf flights after Iran strike
Singapore Airlines warned that other flights between Singapore and the emirates may be affected 'as the situation remains fluid.' PHOTO: LIANHE ZAOBAO British Airways and Singapore Airlines cancelled flights to the Persian Gulf, increasing aviation disruptions in the region after the US struck three nuclear sites in Iran and Tehran vowed to retaliate. London-based British Airways carrier cancelled several flights to Dubai and diverted two planes bound for the emirate overnight, according to data from Flightradar24. One flight took off from Heathrow Airport June 21 night and was diverted to Zurich after it reached Saudi Arabia's airspace in the early hours of June 22, according to the flight tracking site. Another Dubai-bound jet returned to Heathrow after going as far as Egypt. The carrier also cancelled flights to Qatar's capital Doha on June 22 and halted routes to Bahrain through the end of the month due to operational constraints and airspace restrictions. British Airways said it has adjusted its flight schedule as a result of recent events to ensure the safety of customers and crew. Singapore Airlines said on June 22 it cancelled two flights between Singapore and Dubai, warning in an advisory that other flights between the South-east Asian country and the emirates may be affected 'as the situation remains fluid.' Several American and European airlines paused flights to the United Arab Emirates and Qatar last week after Israel started bombarding Iran. The moves highlight growing worries in a slice of the Middle East that is typically considered safe and sheltered from regional dislocations. US President Donald Trump said American bombers struck Iran's three main nuclear sites on June 22 and threatened more attacks if Tehran doesn't capitulate, pulling the US directly into the country's conflict with Israel despite his longtime promises to avoid new wars. Iran has threatened to hit US bases in the Persian Gulf if Washington gets involved and close down the Strait of Hormuz, a vital oil trade waterway it borders with the UAE and Oman. Qatar hosts the largest US base in the region, while Bahrain is home to the US Navy's Fifth Fleet. Bahrain said on June 22 that it is activating remote work for 70 per cent of all government ministries and departments in light of regional developments. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
US announces up to $5 million reward for information on Afghan-American taken by Taliban
US announces up to $5 million reward for information on Afghan-American taken by Taliban WASHINGTON - The U.S. on Monday announced a reward of up to $5 million for information leading to the location and release of Mahmoud Habibi, an Afghan-American businessman who was detained by the Taliban's intelligence service on August 10, 2022. A former civil aviation chief under Afghanistan's ousted Western-backed government, Habibi and his driver were seized along with 29 other employees of the Kabul telecommunications firm for which he worked, said a State Department notice. All except Habibi and one other person were subsequently released. "Mr. Habibi has not been heard from since his initial arrest and the so-called Taliban government has yet to provide any information regarding his whereabouts or condition," said the notice issued by the department's Rewards for Justice program. "Rewards for Justice is offering a reward of up to $5 million for information leading to the location, recovery, and return of" Habibi, it said. The Taliban, who seized Kabul as the last U.S. troops pulled out in August 2021 after a 20-year war, deny holding Habibi. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
